The Confederation of British Industry has cut its forecast for the UK’s economic growth, predicting slower growth and higher unemployment due to the Iran war and rising energy prices.

Economic Forecast

The CBI forecasts that the UK’s GDP will grow 1.1% in 2026 and 0.9% in 2027, which is lower than their previous forecast. Unemployment is expected to peak at 2.0 million or 5.5% of the workforce, the highest since mid-2015.

The Bank of England is expected to leave interest rates unchanged at 3.75% through 2026 and 2027. The CBI’s forecasts are similar to those released by the OECD and the IMF.

CBI Chief Executive Rain Newton-Smith has urged the UK government not to treat businesses as a source of tax revenue, citing the high contribution of businesses to overall taxation.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.